minimum income for buy-to-let applicants continue to set it apart as the head boy in the buy-to-let classroom. Grade: A-


W


woolwIch tIutA


Difficult to assess this one as there have clearly been some domestic challenges which have brought about a period of uncertainty and interruption. It remains a well regarded and forward thinking participant and its contribution to a reinvigorated bridging sector shouldn’t be undervalued. Grade: C+


U


underwrItIng In bygone days brokers didn’t have to understand every lender’s underwriting quirks to get their clients a deal. But times have changed. It’s good to see that some of the smaller mutuals and intermediary lenders are willing to work with brokers to underwrite sensible deals and get good borrowers a mortgage. Grade: B+


V vAlues


Loan to values can be the make or break for first-time buyers so it’s been particularly pleasing to see lenders including Skipton and Nationwide edge up the curve to offer products up to 95%. They may be direct to consumer at the moment but it bodes well for the future.


Grade: A


Something of an enigma. There are inconsistent and varied reports on its servicing proposition depending on which broker you speak to on which day of the week and in the same way that Abbey has achieved a near universally high ranking on service standards after a period of disappointing performance, Woolwich needs to do the same. What isn’t in doubt is the potency of its product range and its Great Escape initiative at the beginning of the year gave a much needed boost to the remortgage world. A growth in market share may not be as significant as we would imagine as despite its parent Barclays’ global dominance and profitability, UK mortgage lending may remain as one of its secondary strategic objectives. Grade: B–


could do better


Overall, the class of 2011 has performed satisfactorily throughout what continue to be constrained and fragile market conditions. One thing can be said – the class remained undersized with too many lenders having either been expelled in recent years or now opting to play truant until conditions favour a return to school.


Of those that have attended this year, it is not surprisingly the well-capitalised players with access to retail deposits and cheaper funding lines which have excelled and mid-year class honours must go to Abbey, Coventry, and Skipton.


Of the other mainstream lenders the


government controlled Northern Rock, NatWest and most significantly LBG are clearly being inhibited by a degree of constraint on funding and on their


permitted approach to risk and pricing. It is hoped that by this time next year (and once the Special Liquidity Scheme and other attendant funding maturations are concluded) these class members will improve upon their recent lending volumes.


The specialist lending sector remains one where the classroom noise is disproportionate to the productivity. We are still a long way away from the underwriting approaches of former years and while this is not such a bad thing it does mean that even the burgeoning bridging sector has a “me-too” feel about it. It is clear that in some cases class newcomers are simply plagiarising the homework of others.


Relations with the headmaster (the Financial Services Authority) remain laboured. This is no doubt hand-braking the self-confidence of some lenders which feel that they have more than weathered the downturn, adjusted their balance sheets and should be receiving greater encouragement from the authorities to help kick start the wider economic recovery.


Against the backcloth of the Mortgage Market Review it is apparent that there is still too much regulatory creep occurring in areas such as product design and criteria and it may be another 12 months before we see this begin to abate and lenders become more assured and dynamic in their approach. n


mortgage introducer JUNE 2011 35


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